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FTXs legal team from Sullivan & Cromwell has 150 people on the bankruptcy case, with thirty partners reportedly charging more than $2,000 per hour. 566 Total views 64 Total shares Listen to article 0:00 News Own this piece of history

Collect this article as an NFT According to a new report, the controversial law firm Sullivan & Cromwell is on track to reap a fortune from its work on the FTX cryptocurrency exchanges bankruptcy case.

Sullivan & Cromwells costs in the FTX case are estimated to reach hundreds of millions of dollars before the firms bankruptcy investigation is over, Bloomberg Law reported on Jan. 27.

As the FTX trial is scheduled for October 2023, the firms lawyers now have about eight months to untangle the complicated FTX case, which will cost a lot of time and money. Sullivan & Cromwell has more than 150 people working on the FTX case, including 30 partners with rates exceeding 2,000 per hour. The report notes that associates are charging up to about $1,500 per hour, citing a court filing.Source: Bloomberg Law

In a court declaration, Sullivan & Cromwell said that its proposed fees are in accordance with market rates by other leading law firms and actually represent a discount from the rates used in non-bankruptcy matters.

Bankruptcy experts have been facing a high demand as the crypto winter of 2022 generated many bankruptcy filings, including those by major crypto firms like Genesis Global Trading, Celsius Network and Voyager Digital.

According to Jonathan Lipson, a Temple University law professor, lawyers are going to do very well in cases like FTX, just as the professionals have done very well in other big cases. For example, New York-based law firm Weil Gotshal made about $500 million in fees from the bankruptcy of Lehman Brothers in 2008.

Lipson said that such big expenses can be justified as Sullivan & Cromwell can potentially help investigators recover money from FTX, stating:The important question is never are the lawyers charging a lot. Its, is it worth it? If they can recover a lot of money, then its probably worth it.

The news comes shortly after FTX bankruptcy judge John T. Dorsey on Jan. 19 approved Sullivan & Cromwells retention as FTXs legal team despite controversy about the firm allegedly having potential conflicts of interest in the case.

Good news for Sullivan & Cromwell. The FTX Bankruptcy Judge just approved their retention amid scathing allegations by a former FTX Chief Regulatory Officer. No continuance to investigate but the Judge’s decision made sense and S&C’s arguments were compelling/very well-presented. pic.twitter.com/ZSVZdGyvkw John Reed Stark (@JohnReedStark) January 20, 2023

The decision came despite concerns related to Sullivan & Cromwell having advised FTX since before it filed for Chapter 11 protection in November 2022. On Jan. 9, United States senators John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis called on the judge to approve a motion to appoint an independent examiner into FTXs activities.

Related: SBF says Sullivan & Cromwell contradicted itself with insolvency claims

Sullivan & Cromwell subsequently emphasized that the law firm has never served as primary outside counsel to any FTX entity and had a limited and largely transactional relationship with FTX and certain affiliates prior to the bankruptcy.

The firm did not immediately respond to follow up questions from Cointelegraph. #Law #Business #Court #Sam Bankman-Fried #FTX #Regulation Related News What is Solana (SOL) Pay, and how does it work? Opinion: Barry Silbert keeps quiet as Genesis goes down in flames FTXs former top lawyer cooperated with the US in Sam Bankman-Fried case FTX former lead engineer in talks with federal prosecutors in Bankman-Fried case FTX customers names will remain sealed for now, rules judge

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Sources: Vols moving on from QB Iamaleava

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Sources: Vols moving on from QB Iamaleava

Tennessee is moving on from starting quarterback Nico Iamaleava, sources told ESPN, in the wake of his decision to not attend practice on Friday amid NIL contract discussions with the school.

Tennessee coach Josh Heupel informed the team at meetings Saturday morning. Tennessee plays its spring game Saturday afternoon. Sources said Iamaleava missing practice Friday proved to be the tipping point.

The standoff between the two sides stemmed from Iamaleava’s contract, and the school decided to cut ties after those talks emerged publicly this week and Iamaleava subsequently skipped practice.

Iamaleava just completed his redshirt freshman season, which means he would have three seasons remaining at his next destination. The spring transfer portal opens Wednesday, and he is expected to be the most notable player available.

Iamaleava showed promise his first year as a starter, leading Tennessee to the College Football Playoff and a 10-3 season. He threw for 2,616 yards, 19 touchdowns and 5 interceptions. He completed 63.8% of his passes.

The Vols’ offense finished No. 9 in the 16-team SEC in scoring offense last year in league play, and he was the league’s No. 10 quarterback in passing yards per game (200.6).

The move puts both Tennessee and Iamaleava in difficult situations heading into the 2025 season. Iamaleava’s departure leaves Tennessee with just two scholarship quarterbacks, neither of whom has started a college game, so there are going to be inevitable additions.

One factor looming over both sides is that SEC rules prohibit transferring within the conference in the spring if the player desires immediate eligibility. That means Iamaleava can’t go to an SEC school and no quarterback on an SEC roster can go to Tennessee if they hope to play in 2025.

Per ESPN sources, officials from Tennessee’s collective have already begun reaching out to third parties tied to potential Iamaleava replacements for 2025.

With Iamaleava’s future uncertain, collective officials began to make calls Friday to see what the potential market could look like. One quarterback got more money from his school Friday after Tennessee’s collective called third-party officials tied to him, a source told ESPN.

This move puts redshirt freshman backup quarterback Jake Merklinger in the driver’s seat to be Tennessee’s starter next year. It’s difficult, though not impossible, for a college quarterback to come in, learn the offense and win the starting job in summer camp. True freshman George MacIntyre is the backup, and Tennessee has a top-10 recruit in the Class of 2026, Faizon Brandon, committed. He is a five-star who is ESPN’s No. 3 overall quarterback.

The market for Iamaleava will be a fascinating one, especially if he’s seeking the same amount of money (in the mid-$2 million range). While there is available money in the system the next few months before the era of revenue share is codified, it’s difficult for a program to bring in a quarterback transfer with high-priced NIL demands in the late spring portal.

It not only is potentially disruptive for the current quarterback room, but it also could disrupt the locker room. Also, many schools have their quarterback salaries structured for 2025.

The move to cut ties with Iamaleava has unfolded as classic tale of modern college football, as Iamaleava arrived at the school with a historic contract reported to be worth more than $8 million over the life of the deal.

He now leaves both Tennessee’s quarterback room and his own future shrouded in uncertainty.

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QB Sullivan enters portal after 1 season at Iowa

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QB Sullivan enters portal after 1 season at Iowa

Quarterback Brendan Sullivan, who started games midway through the 2024 season for Iowa, entered the transfer portal Friday.

In a social media post, Sullivan said he “loved and enjoyed every second” he spent with the Hawkeyes but opted to enter the portal in his “best interest.”

Sullivan, who transferred to Iowa from Northwestern last spring, took over for Cade McNamara midway through a game against his former team and then started the next two games against Wisconsin and UCLA. After missing two games with an ankle injury, he returned to start the Hawkeyes’ 27-24 loss to Missouri in the Music City Bowl.

In January, Iowa added quarterback transfer Mark Gronowski, who won 49 games and an FCS national title at South Dakota State. Gronowski underwent offseason shoulder surgery and has not participated in the Hawkeyes’ spring practices. He told reporters Thursday that he’s ahead of schedule in his recovery and has started to throw passes with the goal of being 100% by June 1.

Iowa also added Hank Brown, a transfer from Auburn who made two starts in 2024.

A native of Davison, Michigan, Sullivan completed 38 of 53 passes for 475 yards with three touchdowns and three interceptions, while adding 150 rushing yards and four touchdowns for the Hawkeyes. He started games for Northwestern in both the 2022 and 2023 seasons, recording 10 touchdowns and five interceptions, but transferred after falling behind Jack Lausch on the spring depth chart.

Sullivan redshirted in 2021 and has one year of eligibility left.

“Someone is gonna get a great dude and a hell of a competitor in Sully!” Iowa general manager Tyler Barnes posted on X.

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Hall of Fame DE Freeney joining Syracuse staff

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Hall of Fame DE Freeney joining Syracuse staff

Pro Football Hall of Famer and Syracuse alum Dwight Freeney has joined the Orange staff in player development, the school announced Friday.

Freeney played defensive end at Syracuse from 1998 to 2001, totaling 34 sacks before becoming a first-round pick of the Indianapolis Colts in 2002. He spent 16 seasons in the NFL, becoming one of the greatest pass rushers of all time.

In 2024, Freeney was inducted into the Hall of Fame. He had his No. 54 jersey retired at Syracuse later that same year.

“The time is now,” Freeney said in a statement. “I think that Syracuse has a lot of good things going. A great foundation and I think they need a push to be able to maintain and exceed that — that is what I hope I’m able to do. My schedule is now a lot freer than it has been in years past, so I’ll be able to help however is needed and in whatever way I can.”

Syracuse went 10-3 last year in the first season under coach Fran Brown.

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